It added sentiment among firms in the consumer services sector fell by 14 points to 19%, also the lowest level for more than three years.

But the report said industrial sector sentiment lifted by 16 points to 61%, the highest level since last spring.

Overall, the survey said UK business confidence fell by 6 points to 32% in May, adding to a growing sense that the UK economy is slowing down.

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: "Our May survey shows a second consecutive monthly fall in overall sentiment, suggesting that economic growth may slow further in the second quarter due to near-term economic risks."

Data from the Office for National Statistics last week confirmed that gross domestic product growth for the first quarter of the year came in at 0.4% following a slump in industrial production, down from 0.6% in the fourth quarter of last year.

Chris Williamson, chief economist at Markit, warned that growth in the second quarter could show the British economy ''slowing to near-stagnation'', weakened by easing global economic growth.

The ONS data showed that the dominant service sector grew 0.6%, but industrial output fell 0.4% and construction dropped 1%. Manufacturing also declined by 0.4%.

Economists have warned that if sluggish growth continues, the Bank of England could be forced to consider a cut to interest rates.

Howard Archer, chief UK and European economist at IHS Global Insight, said: " We believe there is a growing risk that the economy may not bounce back that well after a vote to stay in the European Union, as there is the danger that caution among businesses and consumers could persist following a likely very weak second quarter."